Why could rapidly repaying Britain's debt be harmful in the asteroid-gold scenario?
Short answerIt could disrupt creditor income and the wider economy, so repayment would need careful timing even with the imagined windfall.
NotesIn the asteroid-gold scenario, rapid debt repayment could disrupt the interest income that creditors expect to receive. Banks use income from lending to pay savers, so a repayment on this scale could unsettle the American economy and spread disruption to other countries. A proposed British response is to judge the timing carefully while using the windfall to support Commonwealth economies through generous loans. The intended result is equal footing with the United States while preserving the alliance. Greater financial independence and a stronger fleet would also change Britain's bargaining position during the Suez Crisis.